PZ Cussons Nigeria on Monday reported it pared down its net loss for the quarter ended 31 August by over 88 per cent.
The loss appears minimal for the local operation of British consumer goods company PZ Cussons Plc, when compared to its performance within same period of last year when loss after tax was as high as N38.6 billion.
The balance sheet of the manufacturer took a devastating blow in the three months to November last year after a slump in the value of the naira, its reporting currency, prompted a foreign exchange loss that tipped the company into one of its biggest quarterly losses on record.
At N35.5 billion, the net loss eroded its shareholder fund entirely, throwing it into a negative position of N23.2 billion.
PZ Cussons did not respond to PREMIUM TIMES’ inquiry seeking to know the plan it is putting in place to clear the negative equity, which had gone up 18.5 per cent further at the end of the last financial year.
That negative asset position now stands at N32.2 billion, according to PZ Cussons latest earnings report released on Monday.
PZ Cussons, the parent, disclosed last week its intention to wind down operations or partially offload its stake in its African operations, which comprises Nigeria, Kenya and Ghana.
READ ALSO: PZ Cussons Nigeria reports first annual loss in years amid naira depreciation
The Manchester-headquartered group highlighted the diluting impact of the less impressive performance of its Nigerian unit on its financials for last year, especially the roughly 70 per cent slide in the rate of exchanging the naira for the dollar, which caused profit to fall 57 per cent.
Nigeria, where the local subsidiary is one of the most prominent fast-moving consumer goods multinationals, is PZ Cussons most diverse single market encompassing strategic business units such as food, personal care, electricals and home care.
Pre-tax loss for the period under review soared 86.5 per cent to N5.2 billion, while loss after tax stood at N4.6 billion.
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